Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2016

Note 2 - Income (Loss) Per Common Share

Basic income (loss) per common share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is calculated by dividing net income available to common stockholders by using the weighted average number of common shares and common share equivalents outstanding during the period. The dilutive effect of outstanding options to purchase common stock and non-participating restricted share awards and restricted share units is considered in diluted income per common share by application of the treasury stock method. The dilutive effect of performance share units is included in diluted income per common share in the periods those performance targets have been achieved. The computations of basic and diluted income (loss) per common share for the three months ended March 31, 2016 and 2015 are as follows:

	Three months ended March 31,
	2016			2015
	(in thousands, except per share amounts)
Net income (loss)	$	(15,533	)	$	(19,110	)
Net income (loss) per common share:
Basic	$	(0.40	)	$	(0.48	)
Diluted	$	(0.40	)	$	(0.48	)

Basic weighted average shares outstanding	39,113			39,639
Diluted weighted average shares outstanding	39,113			39,639

Unvested participating shares excluded from basic weighted average shares outstanding since the securityholders are not obligated to fund losses	722			1,134

Shares excluded from the diluted weighted average shares outstanding since Veeco incurred a net loss and their effect would be antidilutive	66			178

Potentially dilutive non-participating shares excluded from the diluted calculation as their effect would be antidilutive	2,295			1,952